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Adam Drobniak, Lucjan Goczoł,

Magdalena Kolka, Mateusz Skowroński

THE URBAN ECONOMIC RESILIENCE


IN POST-INDUSTRIAL CITY – THE CASE
OF KATOWICE AND BYTOM

 
A DAM D ROBNIAK , L UCJAN G OCZOŁ , M AGDALENA K OLKA , M ATEUSZ S KOWROŃSKI

1. Methodological remarks to the case studies


Presented case studies was focused on recognition of the research problem
connected with evaluation of resilience level of the selected post-industrial cities
(Katowice and Bytom) in relation to other Polish cities, which often have diffe-
rent circumstances of economic development (e.g. not always linked with a mi-
ning industry). Among comparative cities the following were identyfied: Wro-
cław and Gdynia.
The selection criteria for the comparative cities to Katowice and Bytom inc-
lude the administrative division of the country. Hence, for Katowice as the capi-
tal of the NUTS2 Silesia region – Wrocław as the capital of the Low Silesia
region was identified. While for Bytom as a town with the status of a county –
Gdynia town, with the same status in administrative division and a similar popu-
lation potential was indicated.
Research tasks make up the solution to the problem posed included:
– description of a socio-economic background of the analysed cities;
– indication of changes impacting the analysed cities development during
1995-2010, which significantly had determined their development paths;
– implementation of quantitative evaluation of identified changes on the analy-
sed cities development paths. This was made by calculation of indexes reflec-
ting: employment level, budgets revenues from companies’ profit taxes, level
of population in both surveyed cities along with comparative ones. The Hill
approach was used in that part of research (Hill et al. 2010);
– identification of new developments in rebuilding Katowice’s and Bytom’s
economic resilience;
– formulation of conclusions referring to level of urban economic resilience
with application of research findings from Simmie and Martin investigations
(Simmie, Martin, 2009).

2. The Katowice case


2.1. Katowice – the socio-economic background of the city
Katowice (306 thousands of inhabitants in 2010), as the capital of the Sile-
sia Region (NUTS2 level, 4.6 million of inhabitants), is having the highest popu-
lation and service sector potentials of the Upper Silesian Agglomeration (also
called Silesia Metropoly)*. the Agglomeration remains the largest urbanised and

*
The city’s residents constitute approximately 16% of the Agglomeration’s population, and the potential of
service sector is approximately 30% of the overall services’ sector potential within the Agglomeration.

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THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY…

industrialised area in Poland, numbering around 2 millions inhabitants. Its rapid


social and economic development in the twentieth century was associated with
a development of heavy industry, mainly mining and metallurgy sectors. The Agglo-
meration covers two basic groups of different cities (Klasik, 2008, pp. 52-53), i.e.:
– the first group includes the cities and towns numbering more than 100 thou-
sands of inhabitants like: Katowice (the capital of the Silesia Voivodeship
and the core city of the Agglomeration), Sosnowiec, Gliwice, Zabrze, Bytom,
Ruda Śląska, Tychy, Dąbrowa Górnicza, and Chorzów;
– the second group includes towns with population from 50 to 100 thousands of
inhabitants, like: Jaworzno, Mysłowice, Siemianowice Śląskie, Piekary Ślą-
skie and Świętochłowice.
Just like in almost all the Silesia Region (Transformation, 1994), also in the
case of Katowice and the Agglomeration processes of restructuring of heavy
industry left their indelible ‘mark’ on the social and economic structures. The
effects of structural changes in 1995-2010 were manifested inter alia in the level
of unemployment, the number of companies, population’s potential, the size of
investment (Business Central Europe, 1997; Drobniak, 2003). The scale of these
effects was also different in relation to individual cities and towns of the Agglo-
meration. Some of them, i.e. mainly Katowice, Gliwice, Tychy growed up to be
leaders of change in terms of development of the service sector, attracting fore-
ign direct investment, creation of new businesses and jobs. In other cities and
towns (like for example: Bytom, Świętochłowice, Piekary Śląskie) the processes
of restructuring traditional industries have had such a large socio-economic im-
pact that the processes of their redevelopment – even now – are relatively weak
(Suchaček, Wink, Drobniak, 2012).

2.2. Changes impacting the city development during 1995-2010


For Katowice the years 1995-2010 are the period of many positive and ne-
gative changes. Up to 2005 the most negative impact on Katowice’s economy
had changes in mining and steel industry sectors. During this period reduction of
300 thousands jobs in the Silesia region as a result of mining reform took place.
At the same time the city itself and the region took attempts to create condi-
tions for new development impulses. For instance, the Regional Contract for
Silesia Voivodeship, which is the first example in Poland of document relating
to regional policy including assistance for a region undergoing major changes of
economic structure.
In analysed period, in Katowice few essential investments were realised
progressively changing its image and economic profile of the city, particularly in

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science, culture, trade, transportation, attracting foreign investment, creating


high-class floor space for service activity.
Significant changes, which certainly influenced the dynamics of deve-
lopment of Katowice, in recent years are: financial crisis from 2008 resulting in
decline of the foreign investors’ interest in the city, rejection of the candidature
of Chorzów (neighboring town) for EURO 2012, and also the rejection – though
in the second round – the application of Katowice to the European Capital of
Culture 2016. A detailed list of the changes taking place in the city and its surro-
undings is presented in the table below.

Table 1
Changes in Katowice and its surroundings
Year Changes in Katowice Changes in Katowice’s surrounding
1 2 3
– Foundation of Upper Silesian – Regional Contrast for Silesia
Industry Park Voivodeship – first attempt in
1995
the country of programming a
regional development
– Foundation of the Katowice Spe- – Decision of General Motors to
cial Economic Zone locate the Opel factory in Gliwi-
ce (a city within Upper Silesian
1996 Agglomeration)
– Foundation of sub-zones of the – Crisis in
Katowice Special Economic Zone* mining and
steel works
– The beginnings of the process of sectors, re-
Poland’s integration with the EU duction in
1997 – – start of the negotiations with employment
six Central European countries, from 400 to
including Polish about 100
– Opening the new building of the – Reform of Poland’s territorial thousands
1998 Silesian Library in Katowice division – creation fo 16 NUTS2 jobs
regions – Closedown of
– Decision of the Katowice Coal many mines
1999 – in the Silesia
Mine closedown
region
– Application for bankruptcy of the – Creation of South Energy Con-
2000 – Numerous
Baildon Steel Works sortium
government
– Opening of the first in Katowice – Creation of Polish Entrepre- reform of mi-
office space in A class (Chorzow- neurship Development Agency ning sectors
2001 ska 50)
– Foundation of the Academy of Fine
Arts in Katowice
– Opening the entertainment center – Act on financial support for
“44 Point” – important element of investment assuming assistance
2002 complex changes in post-industrial from government budget for mo-
district Załęże dernisation investment of up to
500 thousand. euro

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Table 1 cont.
1 2 3
– Sale of the state shares in the
Polish Steel Mills SA company
to ArcelorMittal Poland
2003
– Restructuring and concentration
of the mining sector – creation of
the Coal Company S.A.

– Opening the Office space „Altus” – Integration of Poland to the EU
2004
(A class)
– Opening of the biggest in the – Handover of the A4 motorway
Silesia Region shopping and enter- segment passing through the Upper
2005
tainment centre “Silesia City Cen- Silesian Agglomeration and linking
ter” it with Wroclaw and Krakow
– The completion of a tunnel under – Postponing adaptation of the
the Roundabout and Handover of euro by Poland
the Katowice section of the DTS
(main express road with the Upper
Silesian Agglomeration
2006 – Location of the Rockwell Automa-
tion in Katowice – the biggest in
Central and Eastern Europe sup-
plier of industrial automation
– Opening of the Film Arts Centre in
Katowice
– Foundation of Science-Technology – Foundation of Upper Silesian
Park Euro-Centrum (it develops Metropolitan Association, which
technologies of obtaining energy gather 14 cities and town of
2007 from alternative sources Upper Silesian Agglomeration
– Opening the Science and Music – Gradual
Education Centre “Symfonia” improvement
in the mining
– Launch a complex revitalization of – Worldwide financial crisis sector
the former Katowice mine, inclu-
ding construction of: the communi- – Opening the B terminal at the
cation system of the area, the Inter- Katowice Airport in Pyrzowice
2008 national Congress Centre, the new (the regional airport) allowing
headquarter of the National Polish for service for 3.6m of passen-
Radio Symphony Orchestra, the gers per year
new headquarter of the Silesian
Museum
– The organization of the first European – Rejection of the Chorzów (ne-
Economic Congress in Katowice ighborhood town to Katowice)
2009 application as a host town for the
– European Championships in basketball European Football Champion-
and volleyball women in Katowice ship Euro 2012
– Application of the Katowice to – Stock market debut of the TAU-
2010 European Capital of Culture 2016 RON-Poland Energy (big energy
company rooted in the Silesia region)

*Kontrakt Regionalny dla Województwa Śląskiego (1995). Województwo Katowickie, Katowice.


Source: Katowice Municipality Office.

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2.3. Impact of transition processes on selected social


and economic aspects in Katowice
Implementing the restructuring of the mining and steel industry (perceived
here as the economic shock) had a significant impact on the labour market in
Katowice and other towns of the Agglomeration. The level of Katowice’s em-
ployment from 1995 was never recovered in the analysed period (1995-2010).
Although his level have started to rise since 2005, finally in 2010 it reached only
85% of the level of jobs in 1995 (see Figure 1). The net balance of workplaces in
Katowice was negative, that was: – 28 thousands of workplaces.
Employment index

115

110

105

100
1995=100

95
Katowice
Wrocław
90

85

80

75

70
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 1. Employment index in Katowice and Wrocław (1995-2010)


Source: According to data of Central Statistical Office, www.stat.gov.pl.

Moreover, when we compare the job growth in post-industrial city as Ka-


towice to the same dynamics of jobs in a city that did not experienced the re-
structuring processes in the same time like Wrocław (the capital of neighborho-
od Lower Silesia Region) we can easily find differences in the urban economic
resilience between these two cases. In Wroclaw job’s growth started earlier (in
2004) and had higher dynamics. Finally, in 2007 the city exceeds the level of
workplaces from 1995, and in 2008 reached the level of 110% of the baseline
(see Figure 2).

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THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY…

Tax index

400

350

300

250
1995=100

Katowice
200
Wrocław

150

100

50

0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 2. Katowice’s and Wrocław’s budgets revenues from companies’ profit taxes
Source: Ibidem.

Economic conditions of cities described by the cities budgets’ revenues


from companies’ profit taxes* also reflects significant differences in urban eco-
nomic resilience between Katowice and Wrocław. The value of firms’ profit
taxes can reflect in interesting manner the economic base of a particular city. In
case of Katowice the profit tax collected by the Municipality started to rise in
2003, and reached the level of 174% of the tax revenues from 1995.

*
The revenues were discounted by inflation rate to establish their real value on the year 1995.

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A DAM D ROBNIAK , L UCJAN G OCZOŁ , M AGDALENA K OLKA , M ATEUSZ S KOWROŃSKI

Population index

102

100

98

96
1995=100

Katowice
Wrocław
94

92

90

88
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 3. Population indexes in Katowice and Wrocław


Source: Ibidem.

Of course that positive dynamics showed the first financial effects of the ci-
ty’s efforts referring to rebuilding the local economy structure after restructuring
decay. But at the same time Wrocław’s companies provided much more tax
revenues to the city budget – more then 350% of the year 1995 baseline. That
shows probably stronger and more internationally competitive economic base of
the Wrocław and thus, its better urban economic resilience.
Finally, the population trends which are also affected by a city economic re-
silience. The restructuring processes of coal mine industry and still works sector
impacted significantly on Katowice population level. From 1995 to 2010 it dro-
pped by 40 thousands labeling the city as not-resilient. In this period Wrocław –
despite of country-wide deurbanisation processes – almost maintained the popu-
lation level* proving its ‘shock-resistance’.

2.4. New developments in rebuilding Katowice’s economic


resilience
Today Katowice is under the process of dynamic transformation both spa-
tial and economic. The most distinctive changes can be noticeable in the activi-

*
Overall drop of the Wrocław’s population from 1995 to 2010 was 1.9 thousands of inhabitants
(the city population in 2010 was 623 thousands of inhabitants)

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ties concerning revitalization of the brownfield sites. In the history of Katowice


more than 50 coal mines were founded, 12 endured till XX century and currently
the post-mining facilities cover large areas. When mentioning Katowice, the city
is sill associated with coal mines (but very few are still operating), which today
are either closed or performing new functions. The shopping centre Silesia City
Centre (SCC) is the most excellent and famous example of the first post-
industrial facility in Katowice. For many years this place was the “Gottwald
Coal Mine”, extracting tons of coal per year, and later becoming one of the lar-
gest revitalized areas on the European scale. The mine was closed in 1996 and in
2005 the Hungarian investor – TriGranit placed in Katowice its first investment
in Poland – the SCC. On the postindustrial areas for EUR 180 million was con-
structed multifunctional commercial center with total area of 80 thousands squ-
are meters, including retail area of 65 thousands square meters. The latter investor
Immofinanz Group decided to extend the SCC for EUR 100 million, delivering
extra 20 thousands square meters. Different way of adapting “Gottwald Coal
Mine” urban-industrial areas, performed by TriGranit, is construction of the new
residential – “Oak Terraces” apartments. The residential project consist of
4 stages and will offer ca. 1 thousand apartments in total.
In the very centre of Katowice existed other coal mine named: “Katowice”.
On its areas in 2013 for almost PLN 900 millions will be constructed 3 facilities,
improving the quality of cultural and business infrastructure: the International
Congress Centre, the New Seat of the Polish National Radio Symphonic Orche-
stra and the Silesian Museum. Those projects provide excellent examples of
post-industrial land development and stand as a mark of changes taking place in
Katowice.
Different area being the part of the municipality revitalization activities
(included in the Local Revitalization Programme of Katowice for years 2007-
2013) is Pawła-Wodna-Górnicza quarter. For the years, lack of resources and
complex ownership structure has led to degradation and marginalization of this
part of the city. The first stage of revitalization project in this area is tearing
down 22 buildings and displacing 500 residents. The recovered plot was trans-
ferred to the University of Silesia, which will construct the new seat of the Radio
and TV Faculty for PLN 20 millions.
The undertaken and planned revitalization projects of Katowice are a direct
response to anticipated changes by the business environment. The city transfor-
mation that has already been started probably will enable Katowice to enter aga-
in into the path of dynamic economic growth. Accordingly, Katowice are chan-
ging its economic profile from industrial to services. In Katowice, over the past
few years worldwide known companies from BPO/ITO/SSC sector (Steria, Ca-

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pgemini, PwC), hotel services sector (Hotel Angelo, Best Western Premier) or
R&D (Mentor Graphics, Display Link). have already invested. Mentioned
investments will certify in near future the hypothesis that Katowice are dynami-
cally transforming and economically expanding.

3. The Bytom case


3.1. Bytom – the socio-economic background of the town
Bytom, whose population amounts to 181,617, is a town situated at the he-
art of the Upper-Silesian conurbation. Boasting a 750-year-long history, it is one
of the oldest towns in the region. Bytom encompasses an area of 69.44 square
kilometres. Bytom's geographical situation is regarded as its great asset: it is
located centrally within the Silesian Region, seated at an intersection of major
transport routes and Pan-European corridors III and VI.
Bytom is a classical example of a post-industrial city. Not so long ago, By-
tom was perceived as a town of coal and steel – these two heavy industries play-
ed an essential role in the life of the local community and represented decisive
factors for its economic welfare. However, recent economic transformations
exerted a substantial impact on the town's current situation. The restructuring
efforts deployed at traditional economy sectors, notably coal mining and steel
industry, have definitely closed this chapter in Bytom's history. At the moment,
out of 7 coal mines and 2 ironworks, only one coal mine functions. Consequen-
tly, the economic base of the city has been destroyed and, what is in fact really
important for the city development, it is still not recover (after 15 years from
start-up of restructuring). Bytom is trying to change its image from the city of coal
and steel to the city of services, first of all those connected with the culture industry.
The stagnation of most industries and decrease in the number of registering
entities can be observed. The largest decrease was recorded in trade and repairs
sector. The important increase took place only in industries related to financial
and real estate activities.

3.2. Changes impacting the town development during 1995-2010


As in the case of Katowice, also in Bytom the dynamics of socio-economic
development significantly was driven by restructuring of the mining and metal-
lurgy in the years 1995-2010. However, in this case, the liquidation process was
a much more severe in nature, leading to a significant depletion of the existing
economic base of the town.

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In comparison to the capital of the Silesia region, in Bytom less significant


investments were made both in public and business sector – particularly during
the period of 1995-2005. The result of the closedown of existing industries, and
weak investment pulses were the highest unemployment rate in the region in
2004 (e.g. 26.7%).
Only measures implemented in recent years, such as opening the Bytom In-
dustrial Park, signing a letter of intent on revitalizing the Szombierki mine, the
start of construction of the A1 motorway, the launch of investor service office or
the location of the modern shopping center can be regarded as significant deve-
lopment processes of the town. A detailed list of the changes taking place in
Bytom and its surroundings was presented the table below.

Table 2
Changes in Bytom and its surroundings

Years Changes in the town Changes in its surroundings


1 2 3
– Regional Contract for Silesia
Voivodeship – first attempt
– Initiation of restructuring the mining in the country of program-
industry in the town ming a regional development
1995
– Closure of liquidation processes of the – Establishment of the Upper
Bobrek Steelworks Silesian Fund S.A. (support for
capital market development
and support for entrepreneurs)
– The decision to issue municipal bonds to
– Constant – Foundation of Katowice
1996 finance the revitalization of the market
drop of Special Economic Zone*
square of the town
work-
– Establishment of the Local Segment named places
"Enterprise Activation North Area" within the
Regional Contract for Silesia Voivodeship – Numerous
mining da-
1997 – Foundation of the first tertiary education magedes –
school in the town (School of Economics
and Administration) – Deep
depopula-
– Closedown of the Szombierki mine tion trends

– Separation from the Bytom’s administra- – The creation of 16 regions at


tive division Radzionków district as an NUTS2 in Poland
1998
independent town (loss of about 30 thou- – Availability of the PHARE
sands residents) pre-accession fund
– Availability of grants and
low-cost loans for low-
emission reduction in the
1999 –
Voivodeship Fund for Envi-
ronmental Protection and
Water Management

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Table 2 cont.
1 2 3
– Foundation of The Economic Activity Zone in
the frame of PHARE-STRUDER 2 programme
2000 – Foundation of the Bytom’s Mines Re- –
structuring Company
– Steelworks Zygmunt bankruptcy
– Integrated database of land and buildings
was launched in Bytom – the first in Poland
2001 – General repair of the Silesian Opera House –
– Approval of the Bytom's Development
Strategy for 2001-2015
– Opening recreation and sports complex – Direct election of mayors of
Dolomites “Sports Valley” cities, reducing the number of
2002
municipal councilors (in By-
tom from 50 to 25 members)

2003 – –

– Approval of the Bytom downtown master plan – Accession of Poland to the EU


– The rate of unemployment reached 26.7% in – The inauguration of the
2004 the town (the highest in the Silesia region) cheap airline Wizz Air flights
from the Katowice Airport
– Finishing a closedown process of Rozbark (dynamic increase in number
mine and Powstańców Śląskich mine of passengers)

– Decision of localization of
– Finishing a closedown process of Mie-
2005 the whole A1 motorway part
chowice mine
within the Silesia region

– Foundation of Upper Silesian


Metropolitan Association
– Accession of Bytom to the Upper Sile- – Completion of the S1
2006
sian Metropolitan Association expressway connecting the Ka-
towice airport with the cities of
Silesian Agglomeration
– The availability of the ERDF, ESF
2007 – and Cohesion Fund during the EU
programming period 2007-2013
– Opening of the Bytom Industrial Park
2008 – Signing a letter of intent for the redeve- – Worldwide financial crisis
lopment of the former coal mine Szombierki
– Starting the construction works of A1
motorway in Bytom
– Approval of the Bytom Development
2009 –
Strategy 2009-2020
– Launching the Investor Service Office
within the Office of the City Development
– Opening in the inner city of the shopping – New strategy – EUROPE
2010
center AGORA 2020

* Kontrakt Regionalny dla Województwa Śląskiego (1995). Województwo Katowickie, Katowice.

Source: According to the data of Bytom Municipality Office.

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3.3. Impact of transition processes on selected social


and economic aspects in Bytom
The process of industry restructuring has strong negative impact on social,
economy and environment conditions in the town. Concentration of the enterpri-
ses connected with mining and coal processing tied most of inhabitants with the
mining and metallurgy companies. Closedown of these work places has deprived
many residents of their work and their families of income. Over 30 000 work
places were closedown between 1995 and 2005 and their potential decreased to
about 48 percent of its 1995 potential (see Figure 4).

Employment index

105

95

85
1995=100

Bytom
75
Gdynia

65

55

45
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 4. Employment index in Bytom and Gdynia (1995-2010)


Source: Ibidem.

It caused the excessive increase in the unemployment rate which reached its
highest value in 2004, that is: 26.7%. For that moment Bytom had the biggest
unemployment rate in the Silesia Region. In the 2008 the unemployment rate
decreased to 12.7%, but in the following years it increased again, as the con-
sequence of the world financial crisis.
Compared to Gdynia, which development was also related to a industry
(shipbuilding, which was also a subject of restructuring in the surveyed period)
decrease in the number of jobs in Bytom looks very dramatic. Deep restructuring
of the shipbuilding industry in Gdynia indeed led to reduction of potential jobs

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but “only” about 20%, while in Bytom economic base perceived by jobs had
shrunk by more than 50%. In Bytom, as it was shown on the figure 5, the em-
ployment rate started to rise in 2005, but the growth is very small.
The financial condition of the town companies – measured in Bytom’s bud-
get revenues from profit taxes – has significantly improved after the period of
1995-2003. The growth of the town’s budget revenues from the tax on compa-
nies profits was the highest in 2008 and reached about 180% of the level from
1995 (the calculation takes into account inflation, reducing the amount of reve-
nue from corporate income tax to values from 1995).
Bytom situation therefore appears favorable. However, in a similar period,
i.e. 2007 revenues from corporate income tax in Gdynia’s budget grew by 450%
in relation to their value in 1995. After 2008 the growth dynamics of revenues
from corporate income tax in Bytom – but also in Gdynia – collapsed. It was
partly an impact the global financial crisis (see Figure 5).

Tax index

500

450

400

350

300
1995=100

Bytom
250
Gdynia

200

150

100

50

0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 5. Bytom’s and Gdynia’s budgets revenues from companies’ profit taxes
Source: Ibidem.

Since 1990 the population of Bytom has been decreasing constantly (it was
7.54% in the last decade). There are some demographical causes for this trend:
– The number of births has decreased from 16 on 1000 inhabitants in 1980 to
the 9.7 in 2010 (the number of deaths is at the level of 11.1 on 1000 inhabi-

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tants). The rate of the population change was 6 on 1000 inhabitants in 1980,
and – 1.4 on 1000 inhabitants in 2010.
– The negative balance of the permanent migrations (since the 1994 there have
been more people leaving Bytom forever, than people coming to Bytom to
settle). The balance of net migrations was: 1,244 in 1990, and – 869 in 2010.
Another negative population trend in Bytom is the decreasing number of
young people and economically active group. That is:
– strong decrease in pre-productive age group from 48.107 inhabitants in 1998
to 29.795 inhabitants in 2010,
– decrease in productive age group (from 130.769 in 1998 to 117.057 in 2010).
Concluding the Bytom’s population trends it should be noted that in 2010
the town lost about 20% of its demographic potential from 1995 (see Figure 6).
According to the official statistical forecasts, the population of Bytom in 2030
will drop to 151.772 inhabitants.

Population index

105

100

95
1995=100

Bytom
Gdynia

90

85

80
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Years

Figure 6. Population indexes in Bytom and Gdynia


Source: Ibidem.

3.4. New developments in rebuilding Bytom’s economic resilience


Prior to 1995, when the restructuring process of mining started, mining are-
as had occupied 83% of the city area. At the moment they cover about 35% the
whole town’s area and the exploitation takes place underneath the districts like:
Śródmieście (inner city), Rozbark, Karb, Miechowice, and Dąbrowa Miejska.

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Some parts of the city resemble a „lunar landscape” – the remains of the liquida-
ted mining plants. The recovery of many post-industrial monuments takes a long
time. It is over 300 hectares to develop. Some of the city’s plots still belong to
the Kompania Węglowa (main maiming company). Thus, the Bytom Municipa-
lity cannot directly finance the revitalization of those areas. Whereas on the
other hand, the owner does not feel responsible for taking care of them.
The premises mentioned above were the basis for the Development Strategy
of Bytom update process, which was accomplished in May 2009. The strategy
included new challenges, defined as follows:
– urban convenience,
– infrastructure of environment protection,
– high culture and free time,
– enterprise and innovation,
– sciences and higher education.
The main challenge for the city is the recover of the economic base.
In this context some successes and failures of the transition process can be
observed. One of the successes in transition is exemplified by the area of the
former Szombierki Coal Mine, founded in 1870. Up to 1873 two mining shafts
were built: Hohenzollern (also called Ewa) and Kaiser Wilhelm (called Krysty-
na). In 1993 the process of the Szombierki Coal Mine closedown started. The
coal mine’s post industrial area covers about 60 hectares. For a long time the
whole area was undeveloped. In 2008 a new private owner and investor – GC
Investment – has signed the letter of intent with the city of Bytom, according to
which the area would be developed in an integrated way, including trade and
residential services as well as recreational functions. The presented initiative is
an example of a wide revitalisation process of the post-industrial plot. The in-
novative concept assumes to develop this post-industrial area into a golf course
with recreational parts and residential areas. Thanks to that the space will beco-
me more competitive and the Szombierki district will increase its value. Apart
from these efforts also entrepreneurship and economic activity should be
strengthened on the plot. For the further implementation of the project the inve-
stor will apply to JESSICA* fund, which will support the further revitalisation
investments connected with commercial activity.
On one hand the Bytom Municipality is looking for external investors who
are interested in the revitalisation of post-industrial areas like the GC Invest-

*
JESSICA (Joint European Support for Sustainable Investment in City Areas) – is an initiative
developed by the European Commission and the European Investment Bank, in collaboration
with the Council of Europe Development Bank (CEB). Under new procedures, Member States
are being given the option of using some of their EU grant funding, their so-called Structural
Funds, to make repayable investments in projects forming part of an integrated plan for sustain-
able urban development.

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THE URBAN ECONOMIC RESILIENCE IN POST-INDUSTRIAL CITY…

ment. On the other hand the Municipality tries to develops new concepts of re-
building the post-industrial areas on its on. The example is another area of the
former Rozbark Coal Mine, where the Centre of Dance was raised (the seat of
the Silesia Dance Theatre). Within this project two French artists, that are: Jean
Paul Ganem and Pierre Lussiere, proposed to transform the area into an im-
pressive garden, as they did in Montreal or in San Paulo.
At the same time, the Municipality of Bytom faces a lot of current challen-
ges connected mainly with the effects of previous long-term mining operations.
There are:
– infrastructure damages,
– local depressions (excessive land surface depressions is in the following districts:
Śródmieście (inner city): – 7 metres; Karb: – 15 metres; Miechowice: – 14 metres),
– changes in terrain,
– pollution of environment,
– required new functions development on lot of post-industrial, derelict areas,
– building damages.
The most dramatic consequence of the mining influences was felt by the ci-
tizens of the district of Karb. During last 3 years the area lowered by 3 meters
(from 1965 it is 18 meters). As the consequence of mining operations in the di-
strict of Karb there was a catastrophe on an unprecedented scale in Poland. De-
molition of 28 housing structures caused by the mining damages, forced over
600 people to moved from their homes. The action of resettlement was started
on July 2011 and is still continued.

Conclusions
There is not doubt that Katowice among other post-industrial cities and
towns of the Upper Silesian Agglomeration transforms its economic structures in
probably the fastest and most diversified way. The city is growing up to be the
leader of transformation in terms of a service sector development and attracting
a foreign direct investment. But, as was showed, in comparison to its competi-
tors – like Wrocław – the post-industrial “heritage” of the Katowice still makes
it more vulnerable to external shocks and not resistant to population outflow and
workplaces reduction.
Relatively lower economic urban resilience is assigned to Bytom. Besi-
des of the efforts undertaken by the Bytom’s Municipality in last 15 years to
rebuild of the town’s economic base and strengthening its capacity to keep and
attract new inhabitants – these urban policy priorities still remain not fully reali-
sed. After the shocks from years: 1995 (restructuring process), 2008 (influence

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A DAM D ROBNIAK , L UCJAN G OCZOŁ , M AGDALENA K OLKA , M ATEUSZ S KOWROŃSKI

of the world financial crisis) and 2011 (geological catastrophe in the district of
Karb) the town is still trying to return to its previous growth path, but it seems to
be abandoned and alone in these processes.
No central government support in the form of funds and technical assistance
focused on the post-industrial areas in Poland makes difficult for towns such as
Katowice and Bytom to compete effectively for investors, public institutions,
entrepreneurs on national and international level. Thus their economic resilience
suffers substantially.
According to Simmie and Martin (Simme, Martin, 2009), typology of a ci-
ty’s economy response to a shock, both analysed post-industrial cities are still
below to their prior (to shock) growth paths. They are not shock resistant and
still vulnerable on internal as well as external changes. Probably because of the
coal mining sector redevelopment* – coal mines still exist in Katowice and By-
tom – the cities are also lock in their path-dependency trajectory of growth in
some extent.

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*
In 2011 Poland’s coal mining sector recorded a very good financial performance connected with
increasing internal and external demand on coal.

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